316.40 (Business & Occupation Tax Utility), 316.40 (Business & Occupation Tax Utility) , 341 and 51P (General Government) BARS Codes , 348.00 (Internal Service Funds Sales and Services), 348.00 (Internal Service Funds Sales and Services) , 541 (Roads/Streets Construction Preservation Projects), 541 (Roads/Streets Construction Preservation Projects) , 548 (Public Works Centralized Services), 548 (Public Works Centralized Services) , 308 / 508 (beginning/ending cash and investment balance codes), Cash Basis Cash and Investment Balance Codes , Updated the referenced RCWs and updated for any changes to RCWs, Fiduciary funds Added a reference to the new Determining Fiduciary Activities to be Reported in Custodial Funds, Updated full section to include the new beginning and ending cash and investments classifications, 3.3.8.40 Clarified the definition and requirements for capitalization threshold, Updated the Washington State Treasurer link to the LOCAL program, 3.4.17.80 Updated the years in the measurement date table, 3.6.8.10 Changed "Programs must be approved by the behavioral health organization and the secretary of the Department of Social and Health Services" to "secretary of the Department of Health" to match RCW 71.24.555, Removed references to modified accrual accounting, 3.7.1 Updated references to Office of Management and Budget (OMB) Circulars. Also, if a multiple activity fund (e.g., general fund) includes a significant activity whose principal revenue source meets any of these three criteria, the activity should be reclassified as an enterprise fund. Open periods are required by statute for cities (RCW 35.33.151 and RCW 35A.33.150) and allowed for counties (RCW 36.40.200). It is an important audit that covers billions of federal dollars. Use enterprise funds (400) or internal service (500) for capital payments related to utilities and other business type activities. Section number updated to 4.14.5 (from 4.8.5). For example, purchases of capital assets are expensed during the year of acquisition without any capitalization of capital assets or allocation of depreciation expense. Reporting Requirements and Filing Instructions for Cities and Counties, Use of Deadly Force Investigation Reports, Coming in Fiscal Year 2023 (GAAP and Cash), Accounting Principles and Internal Control, Beginning and Ending Cash and Investments Classifications, Sweeping Interest and Investment Returns into General Fund, Accounting for LOCAL Program Financing Activities, Environmental and Certain Assets Retirement Liabilities, Solid Waste Utilities: Closure and Postclosure Cost Accounting, County Auditors Operation and Maintenance Fund (Recording Fees), County Treasurers Operation and Maintenance Fund, Electronic Funds Transfer (EFT) - Receipts, Liquor Tax and Profits Two Percent Substance Abuse Treatment Programs, Working Advances from the Department of Social and Health Services (DSHS), Certain Grants and Other Financial Assistance (Formerly Pass-Through Grants), Federal Awards Accounting (Formerly Grants Accounting), Confidential Funds (Drug Buy Money, Investigative Funds), Electronic Funds Transfer (EFT) Disbursement, Imprest, Petty Cash and Other Revolving Funds, Memberships in Civic and Service Organizations, Voter Registration and Election Cost Allocation, Equipment Rental and Revolving (ER&R) Fund, Bond Coverage for Public Officials and Employees, New Entity Creation or Dissolution Notification, Reporting Losses of Public Funds or Assets or Other Illegal Activity, 3.1.7.20Accounting and reporting capabilitites, 3.1.7.70Budgeting, budgetary control and budgetary reporting, 3.1.7.80Transfer, revenue and expenditure account classifications, 3.1.7.80Common terminology and classification, 3.1.7.90Interim and annual financial reports, Reporting Requirements and Filing Instructions for Special Purpose Districts, Determining Fiduciary Activities to be Reported in Custodial Funds, Fund Resources and Uses Arising from Cash Transactions (C-4), Fiduciary Fund Resources and Uses Arising from Cash Transactions (C-5), Note 1 Summary of Significant Accounting Policies, Note X Environmental and Certain Asset Retirement Liabilities, Note X External Investment Pool (Counties Only), Note X Joint Ventures, Component Unit(s), and Related Parties, Note X Paid Family Medical Leave Act Self-Insurance, Expenditures of Federal Awards (SEFA/Schedule 16), Revenues/Expenditures/ Capital project funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments (private-purpose trust funds). Code 600-609 - Investment Trust Funds should be used to report fiduciary activities from the external portion of investment pools and individual investment accounts that are held in a trust or equivalent that meets the criteria above. The SWSA, published annually by OFM, documents whether state agencies are meeting the requirements that come with federal money. It was moved to the new Intergovernmental and Forgivable Loans section. The Budgeting, Accounting and Reporting System For other details see, The recent changes in governmental accounting regarding, The entire section was revised to provide a comprehensive guidance for accounting of capital assets. In general fiduciary funds are resources that are held by a government for the benefit of others. 3.9.1.10 Added when interfund loans could be used and requirements for interfund loans from the General Fund. Other resources (investment earnings and transfers from other funds, etc.) However, an entity that normally does not prepare financial statements may not need to prepare them for the single audit if it has expenditures from only one program or cluster. For reporting purposes local governments are required to follow the described below fund structure. 3.4.13 Updates, changes, and clarifications for reporting pensions made throughout. The significant changes are combined into sections according to the year of applicability through the Alerts and Changes tab. In fund financial statements, governments should report governmental, proprietary, and fiduciary funds to the extent that they have activities that meet the criteria for using these funds. Electronic reporting is strongly encouraged when filing annual reports. Separate funds are not required for bond redemption, construction, reserves, or deposits, for any utility. WebIndependent Auditors Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance. Acceptable file should adhere to the They should be expected to continue to comprise a substantial portion of the inflows reported in the fund. 4.1.5.30 Clarified instances where cities/towns and counties do not need to prepare financial statements. 3.1.7.80 Transfer, revenue and expenditure account classifications. 3.1.4.10 Updated the link to the Local Government Records Retention Schedule. Also, if the local government accounts for the debt and capital projects related to proprietary activities in funds other than proprietary, these activities should be incorporated in the appropriate proprietary fund. Final amended budget The original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes applicable to the fiscal year, whenever signed into law or otherwise legally authorized. Replaced with the Schedule 06. More details are provided on the website. However, if there is a pricing policy to recover the cost of issuing those individual building permits, they should be reported in an enterprise fund. They may use the calculation below to determine whether an activity would qualify for reporting as a special revenue fund. For example, building permit fees may be accounted for in the general fund or a special revenue fund in certain circumstances, such as when they are partially supported by taxes. See Caution, above. 341.81 (Data/Word Processing, Printing, Duplication & IT services) Allowed for Fire Districts that provide IT services to other Fire Districts. Governments will receive a red flag if they report functional codes in custodial funds. Any misstatements discovered after the audit is completed that affect Schedule 01 should be recorded as a prior period adjustment. Expenses (Schedule 01), Summary of Bank Reconciliations Please place a check mark or "Y" if the statements/schedules are attached. Proprietary fund revenues and expenses should be classified in essentially the same manner as those of similar business organizations, functions, or activities. So, while the local governments are required to follow their legal requirements, they will have to make some adjustment to their fund structure for external financial reporting. Revenues are recognized only when cash is received and expenditures are recognized when chargeable against the report years budget appropriations as required by state law. Box 40031Olympia, WA 98504-0031. For local governments with a calendar year end, the annual report for fiscal year 2022 is due by Tuesday, May 30, 2023. ", 4.3.13.40 Changed "Prior Period Adjustments, Net" to "Net Adjustments.". 3.1.7.10 The following principles are basic rules of accounting and financial reporting for cash based cities, counties and special purpose districts. Code 000 - General (Current Expense) Fund should be used to account for and report all financial resources not accounted for and reported in another fund. Select prior-year templates (including pension/OPEB) can be found here. Code 400 - Enterprise Funds may be used to report any activity for which a fee is charged to external users for goods or services. These include (a) investment trust funds, (b) pension (and other employee benefit) trust funds, (c) private-purpose trust funds, and (d) custodial funds. Note: Debt service funds should not be used in proprietary funds (400 and 500). Code 610-619 - Pension (and Other Employee Benefit) Trust Funds should be used to report fiduciary activities for pension plans and OPEB plans that are administered through qualifying trusts. 2.4.1.20 Budgeting is more than just an activity to satisfy state law. Numbers for registered warrants and lines of credits. Governmental fund revenues should be classified by fund and by the sources indicated in BARS Account Export. X - Required to be prepared by cities and counties and submitted to the SAON/A - Not applicable; not required to be prepared by cities and counties. This listing also provides the Prescribed accounts, which are the required accounts for annual report filing.The Prescribed option includes only the accounts which are the valid BARS account codes for annual report filing. 4.1 Reporting Principles and Requirements, 4.1.5 Reporting Requirements and Filing Instructions for Cities and Counties. Performance Reports - Office of the Washington State Added instructions for when to use each part of the note. BARS Account ExportsIn this section, governments can access a report providing information on the allowability of BARS codes in fund types as well as export a chart of accounts specific to a government type. [2] Cities with total revenues usually less than $300,000 are also required to submit a Schedule 22 Questionnaire. Although this is considered a custodial fund, it should be reported in a separate external investment pool fund column under the custodial funds classification. The accounting system should provide the basis for appropriate budgetary control.c. The major difference between annual/biennial appropriated budgets and continuing appropriations is that the latter do not lapse at fiscal period end; this implies that no legislative action is required to amend the annual/biennial portion of a continuing appropriation, unless the total authorized expenditures would exceed the entire appropriation.